UAE credit demand stabilizes in the second quarter

Demand for credit stabilized in the second quarter following a recovery during the previous three months, the UAE Central Bank said in a survey.
The quarterly Credit Sentiment Survey likewise noted that credit conditions in the UAE were healthy and the situation would remain the same in the short term.
Net business credit during the quarter ending June was at 7.5, unchanged from the previous quarter’s score. The number represents the weighted percentage of respondents reporting an increase in demand for loans minus those reporting a fall in demand.
The survey respondents said that the demand for business credit main was mainly fueled by those in the construction, transport storage and communication, property development, manufacturing, non-banking financial institutions and the retail and whole sectors seeking either conventional or large-scale loans.
Personal loans also slightly increased during the second quarter to a net balance measure of 1, although this was slower compared with the score of 3 during previous three months.
The Central Bank survey said that demand for personal loans such as credit cards, cars and houses mostly came from Dubai and the Northern Emirates, while the demand from Abu Dhabi borrowers decreased marginally.

Source: Arab News